What Is the Analysis That Works in Reverse to What-If

question 331

Multiple Choice

What is the analysis that works in reverse to what-if and sensitivity analysis by finding the inputs necessary to achieve a goal such as a desired level of output?

• A)Solutions based analysis
• B)Optimization system
• C)Goal-seeking analysis
• D)Revenue analysis

---

Definitions:

Excess Capacity

The amount by which the actual production of a company exceeds its planned production capacity.

Variable Production Costs

Expenses that change in direct proportion to the level of production output.

Cost-Volume-Profit Analysis

An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.

Contribution Format

An income statement format that separates fixed and variable costs, showing the contribution margin which covers fixed costs and profits.